AgroTerra spoke to Oleoscope about the current situation in the fats and oils market

The first half of the 2022/23 season in Russia has concluded, revealing a remarkable oilseed harvest and significant carry-over stocks, which have considerably boosted the country's potential for exporting oil and grist. For example, by the end of 2022/23 marketing year, the Russian Federation may for the first time become the world's leading supplier of sunflower oil.

Nevertheless, the sale of raw materials by agricultural producers poses a potential obstacle. Experts suggest that such tactics employed by farmers may only result in a surplus of raw materials and lead to a collapse in oilseed prices within the domestic market.

 To gain deeper insights into the ongoing season's noteworthy events, price trends, the record-breaking harvest, and the export of finished products, Oleoscope has conducted interviews with experts and market participants.

— How do you assess the current situation in the domestic oil and fat market? What specific features have you noticed since the beginning of MY 2022/23?

Natalia Kiseleva, Director of Ecosystem Department, AgroTerra Group of Companies

This year, we are observing a rise in the demand for soybeans not only from large agricultural companies, but also from smaller farms. The oilseed processing capacities in the Central Black Earth Economic Region are expanding, providing more opportunities for crop growers to sell these crops at a profit.

Additional demand among farmers is created by the need to re-seed due to the weather conditions at the end of 2022. During that period, agricultural producers prepared the land but were unable to seed winter crops in time. Now they are considering soybeans for reseeding purposes.

— What was your company’s main achievement in the first half of the season and in 2022? What are your short and long term goals and objectives?

Anton Andreev, Director for Agronomic Innovations, AgroTerra Group of Companies

We have our own Technology Development Center, where we test not only varieties and hybrids, but also plant protection products, fertilizers, and other elements of crop production technology. The aim of our experiments is to increase production efficiency and optimize costs.

In 2022, we managed to increase the protein content in soybeans using two different technologies. Despite both methods incorporating microelements, they differ fundamentally in their approach. We tested them on the plots of the Technology Development Center and saw both an increase in soybean protein content and a significant increase in yield. With this in mind, we have already adjusted the technology of soybean production for the current season.

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